Santander car loans have been extended until May 31, 2018, to keep borrowers’ monthly payments down.
The terms and restrictions were announced on Thursday by Santander.
The company said the move was made as part of a wider initiative aimed at protecting customers from unscrupulous lenders.
The new term and conditions will mean customers who owe more than $150,000 in debt will no longer be able to access a loan, Santander said.
The bank said that borrowers will still be able access the loans once the terms have been modified.
It said that if a borrower has already had the loan modified, the loan will be returned to the original lender and repayment will be extended until a new repayment plan is in place.
The bank added that Santander will also be launching a new, simplified and easier-to-understand online application to help customers understand their financial situation.
Santander said the new terms and the revised application were aimed at helping the banking sector better identify the risks that borrowers face when making payments on a loan.
Santandard was fined $500,000 for breaching the Fair Trading Act in 2017 and the Fair Consumer Protection Act in 2015.
(ABC News: Matt Condon) SANTANDARD is a US-based company that offers loans and other financial products to consumers across the globe.
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